Market Overview

Jefferies Reiterates Buy, $90 PT On Devon Energy

In a note out today, Jefferies reiterated a buy rating and $90 price target on Devon Energy (NYSE: DVN), implying significant upside for shares of the third-largest U.S. independent oil and natural gas producer. Jefferies said costs are rising for Devon's oil sands projects, but the projects are still economical.

“Devon's construction cost estimate for Jackfish 3 is $1.3 billion, significantly up from $600 million for Jackfish 1 and $1.0 billion for Jackfish 2, while future revenue potential is expected to be about the same, with EUR of 300 mmbo and gross production of 35 mbbls/d. In the Thermal Oil Sands presentation from June of last year, Devon estimated a 25% IRR for Jackfish 2 at a capital cost of $1.0 billion through start-up and $100 oil and $4 gas,” Jefferies said in the note.

Posted-In: Analyst Color News Futures Price Target Commodities Reiteration Intraday Update Markets

 

Related Articles (DVN)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters